Need to Move, but Owe More than your Home is Worth?
If you are a homeowner who needs to move but owes more money than your home is worth you are not alone and we can help!
Over the years we have assisted countless homeowners who had to move, but they were unable to sell because their mortgage payoff and closing costs exceeded the value of their home. While some homeowners might have the funds to pay the outstanding balance so they can move forward with selling their home traditionally many homeowners do not.
So what options do homeowners have if they owe more money than their home is worth, but need to move?
Option 1: Short Sale their Home
What is a short sale? A short sale is a type of real estate sale where the homeowner owes more money than their home will sell for in today’s real estate market, so they ask their lienholder(s) to accept less than what is owed so they can move forward with selling their home. My partner and I have been successfully closing short sales together for years and will be more than happy to educate you about the process so you can determine if this is the right decision for you.
Option 2: Rent their Home
Depending on your monthly out of pocket expenses; mortgage, taxes, homeowners insurance & maintenance fees, another possible option is renting your home. Not everyone wants to be a landlord, but sometimes this is the best option especially if the monthly rental income is going to exceed your out-of-pocket expenses and/or if property value in your area is increasing.
Every homeowner’s situation is different, which is why we will be more than happy to sit down with you and discuss the different options if you owe more than your home is worth, but need to move.
Michelle Gibson of the Hansen Real Estate Group Inc. who has specialized in Wellington, Florida, real estate since 2001. She combines community knowledge with effective marketing, technology, and social media to help buyers, sellers, and renters throughout Wellington.